Last year it was the polar vortex that caused retail sales to be terrible at Christmas. This year it was too warm. How come it can never be just right? What a load of bullshit. If Macys really believed their bad sales was due to warm weather, why the fuck would they announce the closing of 36 more stores and the firing of 3,000 more employees? Who does that because of weather?
This is just the beginning. It is only January 6. Over the next month dozens of retailers will report atrocious results. Some might report positive sales, but they needed to slash prices to achieve any sales gains. Profits will be non-existent. Sears, JC Penny, and numerous other bricks and mortar retailers will announce the closings of hundreds more stores. There will be 5 to 10 retail bankruptcies in the next few months. Ghost malls will become spookier.
This always happens when the economy is recovering. Right? The consumer doesn’t have a pot to piss in. They can’t handle a $500 emergency expenditure. They’re up to their eyeballs in auto, student loan and credit card debt. An economy built upon people buying shit they don’t need with money they don’t have has hit the wall. I wonder who could have foreseen the collapse of retail in America.
Oh yeah. That was me.
Macy’s cuts costs, and thousands of jobs
Shares of Macy’s, down 44% over the past year through the close Wednesday, rose 3.4% to $37.38 in after-hours trading.
Macy’s, which called its 2015 performance “disappointing,” said it expects to cut about 3,000 associate jobs across its stores and implement a “voluntary separation opportunity” for about 165 senior executives. It also will cut 600 back-office jobs and eliminate 750 jobs by consolidating call centers.
Some of the cut employees are expected to be placed in other positions.
“In some cases, there will be short-term pain as we tighten our belt and realign our resources,” Chief Executive Terry J. Lundgren said in a news release.
The news comes as Macy’s also reported weak sales for its holiday period and cut its guidance for its latest quarter. Macy’s said its comparable sales, on an owned and licensed basis, fell 4.7% in November and December.
Macy’s said unseasonably warm weather was responsible for most of the decline, dampening demand for cold-weather gear like coats and sweaters. A U.S. strong dollar also continued to weigh on spending from international tourists.
Macy’s now expects sales for the fourth quarter to decline about 5%, compared with its previous guidance of down 2% to 3% on an owned and licensed basis.
Earnings are expected to come in at $2.18 to $2.23 a share, down from its previous guidance of $2.54 to $2.64 a share. Macy’s said it expects to book about $200 million in charges related to the cost-cutting measures and impairments on store closings in the fourth quarter.
Macy’s will report earnings for the period on Feb. 23.
The retailer also cut its full-year earnings outlook to a range of $3.85 to $3.90 a share, excluding special charges, down from its previous guidance of $4.20 to $4.30 a share.
In an effort to become more agile, Macy’s will close about 36 stores, in locations including Los Angeles and Peoria, Ill., in early spring. Macy’s had announced its store closure plans in September.
It’s a shit store.
Corporate America can SUCK IT for all I care. This will bring China down also which is why they need to start paying those poor schmucks a living wage and they can afford the crap they are manufacturing, otherwise they are toast.
If manufacturing returned to America, stores would prosper as would the paychecks of the working class. ANYTHING short of that and you can wave bye bye to the retailers in this country.
Admin – You are too humble and spot on as usual.
I can sum up Peaceout’s family’s lack of spending this holiday season, one we didn’t really need anything and two, even if we did need something, we didn’t have any freakin’ money to spend anyway.
I did my part by purchasing plenty of silver and gold!
Maybe Macy’s should start selling competitively priced bullion?
Barnes and Noble is going to close 400+ stores over the next few years.
Its not that bad. All they have to do is the impossible. I think the positive attitude people need to come out and show us how a smile will blaze a trail through this shit storm.
If manufacturing returned to america…..bea lever. And you hate trump why? And my maff is bad, why?
If they had sold some quality guns, then they’d be in the black. 🙂
Macy’s Massacre: Thousands Fired; Guidance Slashed (Again); Weather Blamed
Submitted by Tyler Durden on 01/06/2016 16:22 -0500
It was less than two months ago when we brought to you the “Macy’s Massacre”: on November 11, the stock of the iconic retailer crashed 13% and its CDS soared after Macy’s announced a trifecta of weak data, reporting a miss on Q3 sales which came at $5.87 billion below the $6.1 billion expected, down from the $6.2 billion, as well as a plunge in comparable store sales which tumbled by 3.9%, far worse than the expected drop of -0.4%, and nearly three times as bad as the 1.4% drop a year ago.
Cash flow plunged: cash provided by operating activities was $278 million in the first three quarters of 2015, compared with $841 million in the first three quarters of 2014.
Finally, M also slashed its full year same store guidance down from flat to -1.8% to -2.2% with sales projected to drop -2.7% to -3.1%, compared to a previous guidance of -1%, as contrary to the propaganda, the discretionary spending of the US consumer is bad and getting worse by the day.
Fast forward to today when the massacre is back with a vengeance, after the company not only reported yet another cut in its guidance, but also announced it would be laying off another boatload of retailers, demonstrating just how strong the “service” economy truly is.
First, Macy’s said that its comparable sales on an owned plus licensed basis declined by 4.7% percent in the months of November and December 2015 combined, compared with the same period last year. This compares to previous, already poor guidance, of -2% to -3%. The weather was, of course, blamed.
“The holiday selling season was challenging, as experienced throughout 2015 by much of the retailing industry. In the November/December period, we were particularly disadvantaged by the historically warm weather in northern climate zones where both Macy’s and Bloomingdale’s are especially well-represented. About 80 percent of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves. We also continued to feel the impact of lower spending by international tourists as the value of the dollar remained strong,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer.
Compare this to Macy’s 8-K from precisely two years ago, and try not to laugh too hard:
“poor January sales were due to the unusually harsh winter weather across much of the country. Once warm spring weather arrives and our full assortment of fresh spring merchandise is in place, we believe customers will return to a more normalized pattern of shopping.”
So much for the comedy, now back to the tragedy for shareholders, as the company admits not even “harsh cold weather” can save it as it slashes earnings guidance…
Macy’s, Inc. is not expecting a major change in sales trend in January and expects a comparable sales decline on an owned plus licensed basis in the fourth quarter of 2015 to approximate the 4.7 percent decline in November/December (from previous guidance of down between 2 percent and 3 percent for the fourth quarter). This calculates to guidance for comparable sales on an owned plus licensed basis in the full-year 2015 to decline by approximately 2.7 percent (from previous guidance of down 1.8 percent to 2.2 percent).
Earnings per diluted share for the full-year 2015 now are expected in the range of $3.85 to $3.90, excluding expenses related to cost efficiencies announced today and asset impairment charges associated primarily with spring 2016 store closings. This compares with previous guidance in the range of $4.20 to $4.30. Updated annual guidance calculates to guidance for fourth quarter earnings of $2.18 to $2.23 per diluted share, excluding charges associated with cost efficiencies and store closings. This compares with previous guidance for earnings per diluted share of $2.54 to $2.64 in the fourth quarter. Earnings guidance for 2015 includes an expected $250 million gain on the sale of real estate in downtown Brooklyn.
… and a tragedy for its employees, many of whom are about to be fired.
Macy’s, Inc. today announced a series of cost-efficiency and process improvement measures to be implemented beginning in early 2016 that will reduce SG&A expense by approximately $400 million while still investing in growth strategies, particularly in omnichannel capabilities at Macy’s and Bloomingdale’s. The actions represent progress toward the company’s previously stated goal of re-attaining over time an EBITDA rate as a percent of sales of 14 percent.
To address the need for greater efficiency and productivity, among the changes being implemented by Macy’s, Inc. in early 2016 are:
•Adjusting staffing levels at each Macy’s and Bloomingdale’s store in line with current sales volume to increase productivity and improve efficiency. An average of three to four positions will be affected in each of Macy’s and Bloomingdale’s approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. Roughly 50 percent of affected store associates are expected to be placed in other positions.
•Implementing a voluntary separation opportunity for about 165 senior executives in Macy’s and Bloomingdale’s central stores, office and support functions who meet certain age and service requirements and chose to leave the company beginning in spring 2016. Approximately 35 percent of these executive positions will not be replaced.
•Reducing an additional 600 positions in back-office organizations by eliminating tasks, simplifying processes and combining positions, with about 150 of these associates reassigned to other positions.
Luckily, the US service economy is so very strong as Macy’s results confirm, or otherwise someone might get the idea that the “manufacturing recession is not contained.”
SP500 just put out a double sell signal on the service I follow.
This is just not going to be good.
Well it helps Trump.
Jim, when does somebody hire you to lay this shit out? The truth ain’t going away. Since I first read ‘space available’, you’ve nailed (and dogged) this segment out mercilessly ever since, with almost un-natural clarity. Nice work
starfcker
I was hired. I spent 14 years in retail. I knew it inside and out. I could figure out what our stores would sell for. But, I got fired by a know nothing cunt because I wouldn’t fake the numbers for her. So it goes.
Star- I am on my best behavior with regards to Donald Trump for the whole month of January as part of a truce with Flash.
@Star…: I hope you realize Trump thinks Snowden is a traitor and deserves the rope. That tells me what I need to know.
Coast – I disagree strongly with Trump on Snowden, but it is the only item.
Compare that to Bernie Sanders – doesn’t it bother you that your liberal Dem party is supporting a avowed Communist; what the Fuck is wrong with you morons. You should be ashamed if your mind can ever wake up from its coma.
On no!
If they go under, which mega bank or insurance conglomerate will underwrite and rename the annual Thanksgiving day parade?
Westy, you are a one song band; like a singing TV commercial that has run a million times on every channel. Have you cut a grove into your brain the needle can’t get out of? .
Madison Avenue did its’ job well, convincing us what we needed to be at best marginal lug heads. Drive that new car, have that new phone, have the whitest teeth, take that once in a life time vacation annually. We are chumps, we deserve what we get. Mortgaging our children’s future for our own selfish wants, notice I didn’t say needs. The suffering that is to begin will be a shockwave that the sheltered millennials will falter upon. There will be no safe spaces, micro aggressions will be dispensed for macro aggressions that will actually hurt. I have seen and experienced suffering that has tempered my outlook. Life has been very easy for so many for so long, the pendulum is about to swing back!
This bodes well for markets tomorrow. More good news from China ,too.
robert h siddell jr says: Have you cut a grove into your brain the needle can’t get out of? .
Perhaps a coconut grove?
Administrator says: I got fired by a know nothing cunt because I wouldn’t fake the numbers for her.
Admin – this post reminded me there hasn’t been a peep post-Christmas of what a barn-burner retail sales were for the 2015 holiday season. At Thanksgiving we heard all the usual chatter about Black Friday (not good) and Cyber Monday (I don’t remember #s) but NOTHING since Christmas.
With this Macy’s news it makes me think the season must really be a stinker. Has anyone else noticed the complete blackout of retail reporting or am I just missing it?
El Coyote, thanks & eternally grateful; I was perplexed at your comment and had to look up the words: groove is a channel or deep scratch; but if I saw “groove”, I’d think a long-o or “grove”. Actually, groove should be spelled gruv. The Spanish had a Commission that reviewed spelling and fixed dumb spellings. We need to do that for American English for the sake of people with a serious spelling disability like me.
Ouirphuqd – BINGO!
Reminds me of quote by George Orwell:
“Advertising is the rattling of a stick inside of a swill bucket”.
Actually when I read Grove I thought Bohemian, El Coyote.
Yes! I too called the “warm December” being blamed for “less than anticipated retail sales.” Now, weather is Old Faithful when it comes to economic spin, but I’m going to go out on a limb and predict the next excuse will be “low gas prices.”
They’ve used low gas prices to tout the consumer having “extra disposable income” in the past, but when you’re a spin doctor you just love to have it both ways. So over the next quarter you will hear from the talking heads “Low gas prices combined with unseasonably [insert weather trend here] are compelling consumers to spend more time driving and less parked in front of stores.”
As a wild card I think they might also throw in “An unusually exciting NFL playoff season has contributed to more Americans avoiding retail stores in order to watch the games.”
Peter Schiff said it will hurt but most of us have enough stuff
any way. Wow.
https://youtu.be/yHcSWPZmpCw
And in the midst of it all their advertising seems to be directed at alienating the majority of consumers in order to cater to extremely small demographics. It’s as if they deliberately want to lose what’s left of their market share.
GOOD NEWS PART DEUX
Finish Line to close 25% of stores, replaces CEO
By Austen Hufford
Published: Jan 7, 2016 7:51 a.m. ET
Finish Line Inc. said it plans close up to a quarter of its stores over the next few years and is replacing its chief executive as it faces declining sales and supply-chain disruptions.
Shares of the company, which have declined 25% in the past 12 months, dropped 18% in premarket trading on Thursday as the company also posted a deep loss for the third quarter.
The athletic-shoe retailer said current President Sam Sato will become its next chief executive, succeeding current Chief Executive Glenn Lyon. The company also said it would close up to 150 of its stores, or 25% of its total, over the next four years in a bid to increase profitability. The stores targeted to be closed have average annual sales of about $1 million.
The Indianapolis-based firm also increased its quarterly cash dividend by 1 cent, bringing it to 10 cents a share.
In October, a new warehouse and order management system caused a supply-chain disruption for both stores and online sales. The mishaps decreased sales by $32 million and decreased earnings by 42 cents per share in the latest quarter.
Overall, the retailer reported a $21.8 million loss, or 49 cents per share, down from a profit of $2.6 million, or 5 cents per share, a year prior. Revenue decreased 3.5% to $382.1 million.
Analysts projected a loss of 4 cents per-share on $408 million in sales, according to Thomson Reuters.
Comparable-store sales fell 5.8%.
MORE GOOD NEWS
Report: Yahoo to cut at least 10% of its workforce
By MarketWatch
Published: Jan 6, 2016 11:35 p.m. ET
Yahoo Inc. YHOO, -0.12% is preparing to slash at least 10% of its workforce, according to a report Wednesday night by Business Insider. That would eliminate more than 1,000 jobs, according to the report, and cuts may begin as soon as this month. The Sunnyvale, Calif., Internet giant has been reeling in recent years. CEO Marissa Mayer’s turnaround efforts have largely failed, and activist investors are calling for change. This week, Starboard Value LP urged the company to shake up management and overhaul its strategy. Yahoo shares fell more than 35% last year.
Barnes & Noble reports holiday sales decline, 1.6% same-store sales increase
By Tonya Garcia
Published: Jan 7, 2016 8:45 a.m. ET
Barnes & Noble Inc. BKS, -0.56% said holiday sales in stores and online fell 0.8% to $1.1 billion for the nine weeks ending Jan. 2, 2016. The decline was attributed to lower online sales and store closures. Same-store sales were up 1.6%, excluding Nook products. Nook sales decreased 25.8% to $41.2 million, with digital content sales totaling $21.3 million and device and accessory sales totaling $19.9 million for the period. The company maintained its fiscal 2016 same-store sales guidance, forecasting an increase of about 1%. Barnes & Noble shares are up 1.9% in premarket trading but down 42.8% for the past 12 months. The S&P is down 1.8% for the same period.
Why would I go to an overpriced specialty store. Saucony running shoes regularly $105, $35 at the outlet, Under Armour long sleeve workout shirts regularly $50 to $60, $9.99 at Savers almost new. I do not need much stuff, like most I already have more than I need, but when I do buy something I never, ever pay full price and can almost always get it for 50 to 75 percent off unless it is something like an appliance and even there you should be able to get at least 25% off. People are just plain stupid.
I have been able to pay cash for my children’s college education leaving them with a very small loan at the end so they have some skin in the game. Being a cheap bastard is a way of life, I do almost all of my own home repairs. I did not do the roof, 36 squares of shingles does not mesh well with three back operations, but I did sidewall three sides and paint it this summer and fall. I am amazed at how people just piss away money and use their houses as an ATM. I will have mine paid off in just over a year and my wife and I do not make tons of money, we are just frugal.
This Christmas we bought some nice things for our kids since my wife saved up all year to have cash to pay for Christmas. It’s really not that hard, bring your lunch every day. Make your own coffee. Cook your own meals. Iron your own clothes. I could go on and on but I am preaching to the choir. Fortunately my kids take after their parents. We are not cheap, we are quite generous to others, but we are very, very frugal. It’s a lifestyle that would suit many well.
Bob.
Gap Inc. Reports December Sales Results
Published: Jan 7, 2016 4:15 p.m. ET
SAN FRANCISCO, Jan 07, 2016 (BUSINESS WIRE) — Gap Inc.GPS, +5.73% today reported that net sales for the five-week period ended January 2, 2016 decreased 4 percent to $2.01 billion, compared with net sales of $2.10 billion for the five-week period ended January 3, 2015.
On a constant currency basis, December 2015 net sales decreased 3 percent when compared with last year. In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations.
“As we bring the holiday season to a close, we look forward to delivering new Spring collections across our brands,” said Sabrina Simmons, chief financial officer of Gap Inc.
December Comparable Sales Results
Gap Inc.’s comparable sales for December 2015 were down 5 percent versus a 1 percent increase last year. Comparable sales by global brand for December 2015 were as follows:
•Gap Global: negative 2 percent versus negative 5 percent last year
•Banana Republic Global: negative 9 percent versus flat last year
•Old Navy Global: negative 7 percent versus positive 8 percent last year
Urban Outfitters says holiday same-store sales fell 2% for retail segment
By Tonya Garcia
Published: Jan 7, 2016 4:20 p.m. ET
Urban Outfitters Inc. composite” data-bgformat=”>URBN, +1.32% said that holiday season same-store sales decreased 2% for the two months ending Dec. 31. Total sales for the period were flat compared with last year. Sales increased 2% at Free People, but decreased 2% at Urban Outfitters and Anthropologie. Sales for the wholesale segment increased 40% partially due to delayed shipments from the third quarter, the company said. “We continued to experience strong direct-to-consumer growth at all our brands during this holiday season,” said Richard Hayne, chief executive at Urban Outfitters. “These gains were offset by weaker store sales which we believe was driven by declining store traffic.” Urban Outfitters shares are down 37.2% for the past 12 months while the S&P is down 4.1%.
Bed Bath and Beyond misses on third-quarter sales
By Caitlin Huston
Published: Jan 7, 2016 4:29 p.m. ET
Shares of Bed Bath and Beyond BBBY, -1.08% fell 2% Thursday after the company missed third-quarter sales expectations. The company reported net income of $177.8 million, or $1.09 per share, down from $225.4 million, or $1.23 per share, in the year-earlier period. The FactSet consensus was for earnings per share of $1.09. Bed Bath and Beyond had lowered its earnings forecast to $1.07 to $1.10 a share in December, from a previous range of $1.14 to $1.21.Bed Bath and Beyond reported sales of $2.95 billion, up from $2.94 billion in the year-earlier period. The FactSet consensus was for sales of $2.97 billion. The company issued fourth-quarter guidance of $1.72 to $1.86 per share and $4.91 to $5.05 for the full year of 2015
Container Store slumps after reporting third-quarter loss
By Sue Chang
Published: Jan 7, 2016 4:21 p.m. ET
Container Store Group Inc. TCS, -5.15% sank in Thursday’s extended session after the retailer posted disappointing results. The storage and organization products company swung to a third-quarter loss of $1.7 million, or 4 cents a share, from a profit of $6.2 million, or 13 cents a share, a year earlier. Latest quarter results reflect 3 cents a share in expenses related to strategic initiatives, which was a cent higher than anticipated, the company said. Revenue increased to $197.2 million from $190.9 million a year ago while same-store sales rose 0.5% from the same period last year. Analysts surveyed by FactSet had forecast Container Store to report earnings of 5 cents a share on revenue of $200 million. Shares sank 12% in after-hours trading.
Admin, more great news. Chefs.com, a place I have used to buy kitchen goods, is going out of business. Yeah, but, I thought online sales were different, right? They are sucking wind. I am getting ridiculous deals from all my online retailers, where I do my shopping. Free shipping! 40 % off on all merchandise! Spend $100 and get a blowjob!
I will be in my east chair, sipping cheap vodka and soda as this shit sandwich is eaten world wide.
Give Admin some credit here. He’s been predicting a big crash in the major brick and mortar retailers for several years. Now ti comes about – don’t be surprised at it..
MA